How to be Eligible for a Student Loan in India?
Education expenses have seen a steep rise in India in the last few decades. Studies found that it is increasing more than the per capita income. Parents may find it extremely difficult to cope with secondary and post-secondary education. It is especially true due to the economic fallout from the pandemic in the form of employment loss and pay cuts. Monthly earnings and savings have been majorly hampered and the recovery is uneven.
The good news is that a student loan online application eliminates the need to liquidate investments. Neither do you have to touch your savings and or use your credit cards. Simply update your KYC details and apply for a loan up to ₹75 lakhs. A few attractive features assured by a good bank are:
- Income tax benefits under section 80E
- Flexible repayment options
- Customised solutions
- Up to 100% financing
- Doorstep loan fulfilment.
To apply for student loan online comes with multiple benefits. It helps you be financially independent and strengthen your credit history. You can also enrol on your favourite course and university in both India and abroad and take a step ahead towards your dream career. But it is a good idea to know how to be eligible for a student loan in India. Here’s a look.
Basic Eligibility Criteria
The top bank will need you to be an Indian citizen or NRI above 18 years of age who has secured admission to the desired institution. A pre-admission sanction is also accepted in case the admission is not available.
Make sure you have presented all the updated documents with information true to your knowledge. It will include a fully filled application form, photo ID proof, proof of residence, passport size photo, free structure document, salary slips of experienced candidates, academic documents and visa copy in case of overseas education.
You will have to arrange for a co-applicant with a steady income. It can be anyone from siblings, parents, grandparents or spouses. No need to arrange for a collateral to get the loan sanctioned. It is unsecured which cuts the risks of losing assets during EMI defaults.
It is also necessary to ensure a proper credit score. It assures lenders of your creditworthiness and helps you negotiate the interest rates and get lenient terms and conditions before you apply for student loan online. A score of 700 and above is ideal for a hassle-free process.
Try to ensure a steady monthly income, if possible. This can be in the form of a part-time job along with your higher studies. Freelancing is the best option to avoid the work pressure yet earn a handsome salary every month. It is especially needed if you are applying for a loan instead of your parents.
Know which bank provides education loans and visit their website. Check whether you tick off all the laid qualifications. Further, use an education loan EMI calculator to arrive at the monthly payments. This will help you get an idea of the finances and apply within your means instead of a hefty amount. Be careful since a high fund request beyond your financial capabilities can get the application rejected.
